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Assume there are two companies organized at approximately the same time and engaged in competing businesses. One company issued $ 0.1 par common stock and another one issued $10 par common stock. Can you tell which company’s stock is preferable as an investment? Why? If you need additional information to decide which stock is a better investment, what kind of information will you need?

Respuesta :

anthougo

1. It is not possible to tell which company's stock is preferable as an investment based on the par-values of their stock issuance.

What is a par value?

A par value is a rate at which a company issues its stock or bonds (financial assets) to investors. The par value does not determine the actual value of the shares or investments because it is based on the corporation's charter.

2. Thus, the information an investor requires to decide the stock to choose depends on the profitability and growth potentials of the companies involved because investors want to earn profitable returns for their investments.

Learn more about the par value of a share at https://brainly.com/question/3521865

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